AUD/JPY consolidates close to 50DMA just under 83.00, but on the cusp of a bullish technical breakout?


  • AUD/JPY saw subdued trade amid a lack of Australia/Japan-related fundamental developments and remains close to its 50DMA at 82.94.
  • The pair may be on the cusp of breaking to the north of a medium-term bearish trend channel.

AUD/JPY spent most of Wednesday’s trading session consolidating close to its 50-day moving average, which currently resides just to the south of the 83.00 level and trading well within recent ranges. In Asia Pacific trade, kneejerk weakness in NZD following a more dovish than expected RBNZ rate decision pulled the Aussie lower and dragged AUD/JPY as low as the 82.70s. The pair then gradually rebounded back to current levels around 83.00 where it looks set to end the session.

FX markets focus has been elsewhere, such as on the evolving European Covid-19 crisis, on a barrage of US data, Fed speak and the Fed minutes. That, combined with a lack of either Australia or Japan-related fundamental developments, meant it is not surprising to see AUD/JPY trade with a lack of conviction. That lack of conviction is likely to be the story of the rest of the week, with most US market participants now on holiday for Thanksgiving.

To the upside, the most immediate resistance for AUD/JPY is this week’s highs in the 83.20 area. To the downside, aside from Tuesday’s lows in the 82.60s, the next main area of support is last week’s low at 82.15 and then the early September high at almost bang on 82.00 just below it.

AUD/JPY breaking out of medium-term bear trend?

Looking at AUD/JPY over a longer time horizon, the pair may be showing some bullish signs that it is about to break out of a bearish trend channel that has been containing the price action since the start of November. A break to the north would signal a potential move towards the pair’s 21DMA and 15 November highs in the 84.00 area.

Share: Feed news

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended content

Editors’ Picks

AUD/USD flat lines above mid-0.6700s ahead of Australian jobs data

AUD/USD flat lines above mid-0.6700s ahead of Australian jobs data

AUD/USD attracts some dip-buyers on Thursday, around the 0.6820 region. Against the backdrop of the RBA's hawkish stance, the upbeat market mood acts as a tailwind for the pair. That said, persistent concerns over an economic slowdown in China, along with a modest USD uptick, cap the upside as traders await Australian employment figures.

AUD/USD News
NZD/USD advances to near 0.6200 due to risk-on mood, Fed interest rate decision awaited

NZD/USD advances to near 0.6200 due to risk-on mood, Fed interest rate decision awaited

The NZD/USD pair edges lower to near 0.6200 during the early Asian session on Thursday. The recent GDP data revealed that New Zealand's economy shrank again in the second quarter, suggesting the depths of its economic malaise.

NZD/USD News
Gold price stalls post-FOMC pullback from all-time peak; lacks firm intraday direction

Gold price stalls post-FOMC pullback from all-time peak; lacks firm intraday direction

Gold price oscillates in a range on Thursday and consolidates the previous day's post-FOMC rejection slide from the $2,600 mark or a fresh record high. Persistent geopolitical risks, along with signs of economic trouble in the US and China, lend support to the safe-haven metal.

Gold News
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures